Re: So are they breaking the law or not?
It is impossible to close all the loopholes and trying to just makes tax more confusing. For this exact reason using technicalities to not honour the spirit of tax law used to be called tax evasion and punishable by harsh penalties.
Gov are only letting them get away with it now because they and their chums are using the same loopholes to avoid paying their fair share too. If they had any backbone at all they could beat them at their own game and penalise every tiny mistake in their accounts to get the cash out of them. This constant scaremongering that they will ditch the UK and take their business elsewhere is nonsense because the UK public are their product.